Problem - Robin Shalit, D.D.S., opened a dental practice on January 1, 2014. During the first month of operations, the following transactions occurred.
1. Performed services for patients who had dental plan insurance. At January 31, $876 of such services were performed but not yet recorded.
2. Utility expenses incurred but not paid prior to January 31 totaled $661.
3. Purchased dental equipment on January 1 for $90,000, paying $25,100 in cash and signing a $64,900, 3-year note payable. (a) The equipment depreciates $450 per month. (b) Interest is $649 per month.
4. Purchased a one-year malpractice insurance policy on January 1 for $23,388.
5. Purchased $1,654 of dental supplies. On January 31, determined that $460 of supplies were on hand.
Prepare the adjusting entries on January 31. Account titles are Accumulated Depreciation-Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expense, and Utilities Payable.